Crude oil futures closed lower Wednesday (June 29) after U.S. gasoline and refinery inventories rose sharply last week.
- WTI crude futures were down $1.98, or 1.8%, at $109.78 a barrel.
- BRENT crude futures were down $1.72, or 1.5%, at $116.26 a barrel.
The U.S. Energy Information Administration (EIA) released its weekly crude oil inventories for the week ending June 24. According to the report, gasoline inventories rose by 2.6 million barrels, while refined gasoline inventories increased by 2.6 million barrels. Heating oil and diesel fuel increased by 2.6 million barrels.
U.S. crude oil inventories declined by 2.8 million barrels.
However, oil prices continued to be supported as global oil supply tends to tighten as Saudi Arabia and the United Arab Emirates are producing close to their full potential. This makes it less likely that the two countries will increase their production capacities.
There is also political unrest in Libya and Ecuador that is affecting oil production.
Investors are turning their attention to the OPEC and OPEC+ meeting that started yesterday and will end today. At this meeting, OPEC+ will discuss production confirmation in August. However, there will be no discussions about oil production in September.
At the June 2 meeting, OPEC+ decided to increase production by 648,000 barrels per day in July and August, up from 432,000 barrels/day in June.
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Thursday, June 30, 2022